Buyers may keep off gold

New Delhi, May 7: High bullion prices may push down demand for gold this Akshay Tritiya, an auspicious day as per Hindu calendar for purchasing precious metals, but the industry expects gold consumption to increase in general as it is a safe investment option.

The quantity of gold purchased will be less compared to last year as the prices of the precious metal is higher, said Karvy Comtrade analyst Mr G. Harish adding that the demand will still remain high.

Gold prices (24 carat) have jumped nearly 25 per cent to Rs 11,700 per ten grams now, compared to Rs 9,500 a year ago.

Mr Harish said the fall in gold import during April would be reflected in the consumption. "The demand for gold does not depend only on local festivals, but also on international factors and I don’t see any shift in fundamentals," he added.

Meanwhile, All India Gems and Jewellery Trade Federation chairman Mr Ashok Minawala said, the trend of increase in demand for gold was visible two days before Akshay Tritiya. (PTI)